How do Bitcoin ETF inflows and outflows reflect institutional demand?
Why is this the correct answer?
When institutional investors buy Bitcoin ETFs, they deposit capital into these funds, driving demand and often supporting the price. Conversely, when they sell ETF shares, it can indicate they are booking profits or becoming less confident, leading to outflows. Beginners can track ETF flow data to gauge whether larger investors are entering or exiting the market, which can provide insight into potential price trends.
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